Apple’s dominance in the U.S. smartphone market has taken a sharp turn. In the second quarter of 2025, its market share dropped from 56 percent to 49 percent, while Samsung surged from 23 percent to 31 percent. According to Canalys, Samsung’s success is closely tied to its foldable phones and budget-friendly models, which are drawing in consumers at a pace Apple has struggled to match.
Samsung’s approach, which it calls “smart volume,” means offering devices at every price tier. On one end, phones like the Galaxy A36 appeal to cost-conscious buyers. On the other, the Galaxy Z Fold 7 and Z Flip 7 are redefining premium devices with improved durability and better user experience compared to earlier foldables. That combination of variety and innovation is helping Samsung capture consumers Apple might otherwise retain.
The overall U.S. smartphone market grew only slightly year-over-year, rising from about 26.7 million to 27.1 million units. Yet within that slow growth, Samsung expanded shipments by 38 percent, reaching 8.3 million units. Apple, in contrast, saw an 11 percent decline, falling to around 13.3 million. This narrowing gap is the closest the two rivals have been in more than a decade, raising questions about Apple’s long-term strategy.
Supply chains are another critical factor in this shift. With tariffs pressuring production costs, Apple has ramped up iPhone assembly in India. That shift pushed India’s share of U.S. smartphone exports from 13 percent to 44 percent, while China’s role dropped from 61 percent to 25 percent. The change highlights how geopolitical and trade challenges are reshaping global electronics supply. As Reuters reports, overall U.S. demand remains sluggish, which makes these regional supply moves even more significant for profitability.
For engineers and product strategists, the lessons are clear. Samsung is benefiting from a broad portfolio that balances experimental designs with accessible entry-level models. Foldables in particular are proving their staying power, suggesting that innovation in form factor can shift market share when execution is solid. Apple, meanwhile, is sticking to its established playbook of refining a limited lineup of slab-style iPhones. That consistency has worked in the past, but it risks looking conservative in a market where consumers are showing interest in alternatives.
From a technical and strategic standpoint, Samsung’s rise shows how product diversification and manufacturing flexibility can offset broader market stagnation. For Apple, the question is whether patience and polish will once again win out, or if the market is signaling that the time has come for more radical design changes.
